Ripple Price Analysis: XRP/USD Under Bearish Pressure
Ripple price has moved into the bearish zone below $2.00 against the US Dollar. XRP/USD will most likely extend declines toward the $1.40 level.
Key Talking Points
Ripple price started a major downside move after forming a top around the $3.3691 against the US Dollar.
There is a major descending channel forming with current resistance at $2.05 on the 2-hours chart of the XRP/USD pair (Data feed via Kraken).
The pair will most likely decline further and it could even test the $1.40 support area.
Ripple Price Forecast
After a major upside move above the $3.00 level, Ripple price faced a lot of selling pressure against the US Dollar. The XRP/USD pair traded as high as $3.3691 before it started a downside move below the $3.00 level.
The decline was strong as the price traded below the $2.50 support area. During the downside move, there was also a break below the $2.00 handle and the 100 simple moving average (2-hours). It is now well below the 76.4% Fib retracement level of the last wave from the $1.6029 low to $1.3691 high.
At the moment, there is a major descending channel forming with current resistance at $2.05 on the 2-hours chart of the XRP/USD pair. The pair is likely to extend declines toward the last swing low of $1.6029.
Should the current decline extend, there is a chance of XRP testing the 1.236 Fib extension of the last wave from the $1.6029 low to $1.3691 high at $1.1861. An intermediate support is around the $1.40 level where buyers may attempt to prevent further declines.
On the upside, the channel resistance is at $2.05, which is a major upside hurdle for buyers. Above the channel resistance, the price could attempt a decent upside move above the $2.40 level. However, the 100 SMA is at $2.50 to prevent any major upside move.
Overall, Ripple price is currently under a lot of pressure, and it could extend the current decline back toward the $1.40 level in the near term.